RBI Grade B
IBPS RRB PO
RBI GRADE B
IBPS PO and Clerk Interview Questions and Answers - PDF Download
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Published on Friday, August 18, 2017
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Important Tips for Interview:
Always enter the room with a good smile on your face, keep yourself cool and
composed. Greet the interviewers with a ‘Good Morning’, ‘Hello’, ‘Namaste’ or OLIVEBOARD TEST SERIES (SPONSORED)
anything that you think is more appropriate. Please look at everyone’s face when you enter and greet.
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Even if the question is asked by one interviewer always remember to look at everyone
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while you are answering. Keep eye to eye contact throughout the interview. Always be very honest and realistic.
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As you are handling the huge bank transaction, honesty and integrity should not be in
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question. Thumb rule is Never Lie! Even if you lie (though not recommended), you should sound genuine.
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Personality Based Questions
(1). Introduce / Describe yourself. This would be generally the first question in any interview. The interviewer also might split the question. If the interviewer already addressed you by your name before they start the interview, you don’t have to start by answering ‘my name is so and so’. They may also start by asking ‘tell us something about your education’, ‘Tell me something about your family’, ‘Have you appeared for any banking interview before’. Be prepared to answer any question that they may begin with and also question that arise from your answers. For instance, if you say that you have appeared banking interview before, they
My name is Ramandeep Singh. I love to help people preparing for Bank exams.
would ask ‘what was the result’, ‘why do you think you have not cleared’. ‘What did
you do to improve yourself this time’. If you have any prior job experience, be ready to answer questions related to your job’. Below is typical answer, you’ll have to change your answer as appropriate. When you talk about your hobbies, make sure you have fair knowledge about the area. If you say ‘reading books’, they might ask you about the last
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book that you have read. If you say ‘travelling’, they might ask you about the place you
have travelled and significance/ historical questions related to the place. If you say ‘browsing’, ‘watching TV’ etc , rather than just talking about TV Serial, entertainment shows or chatting, talk also about the news channels, learning oriented activities. Channels: Hindustan Times, Time Now, CNN IBN, CNN , BBC, ‘NDTV Profit channel’, ‘CNBC’ etc. Internet: Google to search for documents and learning materials. Go through some financial websites in internet. If you are into share trading, you may mention that as well. But you should have knowledge about stocks, NIFTY, Sensex etc. But remember when you talk about this, you should have good understanding about the content. Here is a typical answer: ‘My Name is . I’m graduate/post graduate in . I have completed my graduation from . My schooling was from . I’m working as a in for the last <2 years>. To speak about my family, my husband is working with as . My father is a and mother is a . I have one brother; he’s doing his . My hobbies are .
(2). What attracts you to a career in Public Sector banking? or, Why you want to enter in Public Banking industry? Because of three things: (a) A job in a public sector bank is considered a job for life. With opportunities to advance at work and not worry about being fired because of downsizing or a bad economy. (b) Good and rational Promotion Policy. You will get promotion, as per your work performance and capabilities. (c) Good Salary.
(3). Why are you not working anywhere from past 6 months ? As competition in banking exams is very challenging, I was preparing for bank exams and a job could distract me from my goal. That's why, I concentrated on bank exams preparations only.
(4). Can you shift to another city ? Yes. I always like to visit new places, meet new people. Working in new environment makes us to learn more and in a better way. Also, as one of my reason to join banking industry is its rational promotion policy, I can't expect all of my future promotions in the same city, it’s not possible.
(5). Why Did You Leave Your Last Job? Don’t go into detail about your terrible boss, or the horrible work conditions. You should answer the question honestly, emphasizing what you did like about working there, while explaining the unavoidable circumstances that led to your departure. You can answer this question in the following ways: (a) I learned a tremendous amount at that job but there was no additional learning for me to get there. I was interested in pursuing my love of [whatever you're looking to do in Bank job]. Or (b) I left for an opportunity to advance my career in Banking Industry. (6). Why don't you join your father's business? I can join my family business anytime and my father will be more than happy if I do so. However, I want to use the skills and knowledge that I have acquired during my days in college. Moreover, I want to do something on my own and prove my worth to myself. That's why I don't want to join my family business now.
(7). You want to join Banking Industry, then why you have done engineering? This is the most asked question in interviews for banking jobs for engineering graduates. Traditionally, it is believed that bank jobs are taken up either by commerce graduates or MBA degree holders. However, with the sheer amount of engineers that India is producing year after year, that picture has changed quite a lot in the last decade. More and more engineers readily choose banking jobs straight out of their engineering college. The straight-forward answer to that is either one of these two or both: 1. Banking career in India is secure. 2. Banks offer better salary package over other sectors. Even if you have a third option in mind already, you need to be able to put it very clearly before the interviewer. Many applicants aren't very sure of why they are going into a banking sector job, so we advise that you take time out before the interview to write down what a career in banking means to you and why you are a perfect fit for the said position in the bank.
(8). Who is your ideal or a person who inspired you most(and why)? It is up to you. He/She can be any great personality, your mother/father, etc.
(9). What are the strong and weak points of your personality? It is up to you. Think about it. Prepare a good answer for it yourself. While telling your weak points, interviewer can ask 'Can you improve your weak points(and how)?'
(10). If you don’t get final selection in this examination to what would you do? I will try again, with more passion and hard work. Must read - 50 Most Popular bank interview questions
Knowledge Based Questions
(1). Nationalization of Commercial Banks in India The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969.
(2). What is Cash Reserve Ratio (CRR)? In India, banks are required to retain a certain percentage of their deposits as liquid cash. However, banks prefer to deposit this liquid cash with The Reserve Bank of India, which is equivalent to having cash in hand. The percentage of the deposits that should be kept aside by banks is called Cash Reserve Ratio. CRR is fixed by The Reserve Bank of India. For example: If the bank deposit amount is Rs.100 and the CRR is 10% per annum, the liquid cash that the bank should have at all times is Rs.10. The remaining funds, which is Rs.90 in this case can be used for lending and investment purposes. RBI has the power to determine the lending capacity of the banks in India through CRR. They will increase CRR if they want to reduce the amount that the banks can lend and vice versa. The current CRR is 4% p.a.
(3). What is Statutory Liquidity Ratio (SLR)? At the end of every business day, banks are required to maintain a minimum ratio of their Time liabilities (when the bank has to wait to redeem their liabilities) and Net Demand (when bank can withdraw money from these accounts immediately) in the form of liquid assets like gold, cash and government securities. The ratio of time liabilities and liquid assets in demand is called Statutory Liquidity Ratio or SLR. The maximum SLR that The Reserve Bank of India can set is 40% p.a.
(4). What is Bank Rate? Bank Rate is the rate of interest charged by The Central Bank of India against loans offered to commercial banks. Bank rate is usually higher than repo rate. Unlike repo rate, bank rate directly affects the end user, in this case the customer, as high bank rates mean high lending rates. When bank pay high interest rate to obtain loan from RBI, they in return charge the customer high interest rate to break even. Also known as “Discount Rate”, bank rate is a powerful tool used by the RBI to control liquidity and money supply in the market. The current Bank Rate is the same as MSF rate.
(5). What is Liquidity adjustment facility (LAF)? Liquidity adjustment facility (LAF) is a monetary policy to which allows banks borrow money through repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF helps banks to quickly borrow money in case of any emergency or for adjusting in their SLR/CRR requirements.
(6). What is Repo Rate? The discount rate at which a central bank repurchases government securities from the commercial banks, depending on the level of money supply it decides to maintain in the country's monetary system.
(7). What is Reverse Repo Rate? Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. It is a monetary policy instrument which can be used to control the money supply in the country.
(8). What are Open market operations? Open Market Operations refer to the purchase and sale of the Government securities (GSecs) by RBI from / to market. The objective of Open Market Operations is to adjust the rupee liquidity conditions in the economy on a durable basis. When RBI sells government security in the markets, the banks purchase them.
(9).What is a Commercial paper? A commercial paper in India is the monetary instrument issued in the form of promissory note. It acts as the debt instrument to be used by large corporate companies for borrowing short-term monetary funds in the money market. An introduction of Commercial Paper in Indian money market is an innovation in the Financial system of India.
(10). What are the different services provided by commercial banks? (a) Accepting Deposit (b) Advancing Of Loans (c) Discounting Of Bill Of Exchange (d) Cheque Payment (e) Remittance (f) Collection And Payment Of Credit Instruments (g) Foreign Currency Exchange (h) Consultancy (i) Bank Guarantee
(11). What are Financial markets? A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural products.
(12). What is Inflation? In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.
(13). What is Deflation? In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.
(14).What is a Saving Account? A savings account is one of the simplest types of bank accounts. It allows you to store cash securely and earn interest on your money.
(15). What is a Current Account? A current account is a type of deposit account that caters to professionals and businessmen alike. Dealing largely with liquid deposits, this product allows for withdrawal of funds and checks being written against the balance and does not limit the number of transactions in a day.
(16). What is Corporate Banking? Corporate banking is defined as custom-tailored financing and banking services for corporations. Corporate banking is typically offered by commercial banks, and entails all the services that can be extended on a financial level to corporate entities to ease day-today operations.
(17). What is Public Provident Fund (PPF)? Public Provident Fund (PPF) scheme is a popular long term investment option backed by Government of India which offers safety with attractive interest rate and returns that are fully exempted from Tax .Investors can invest minimum Rs. 500 to maximum Rs. 1,50,000 in one financial year and can get the facilities such as loan, withdrawal and extension of account.
(18). What are the different Investments under 80(C)? 1. Fixed deposit (5 years) 2. PPF 3. Equity mutual funds 4. ELSS 5. EPF and VPF 6. NSCs (National Saving Certificate) 7. ULIPs 8. NPS (Pension plans) 9. Life insurance
(19). What are the different functions of NABARD (National Bank of Agriculture and Rural Developments) NABARD is a Development Bank with a mandate for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas.
(20). What are the different functions of SEBI (Securities & Exchange Board of India) Go through this Article
(21). Role of RBI (Reserve Bank of India) 1. Government’s banker and performs banking functions for the central and the state 2. governments. 3. Bankers of banks 4. Maintain liquidity in the economy 5. Regulator of country's financial system 6. Regulates and facilitates foreign trade advisor to the Government of India 7. Issue currency notes
(22). Role of IRDA Go through this Article
(23). What are Derivatives? A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps. Description: It is a financial instrument which derives its value/price from the underlying assets.
(24). Monetary policy Go through this Article
(25). Fiscal policy Go through this Article
(26). GST and its impacts Go through this Article
(27). What is Priority sector Lending? Priority Sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.. This is essentially meant for an all round development of the economy as opposed to focusing only on the financial sector.
(28). Non Performing Assets (NPA) and SARFAESI Act Go through this Article
(29). Know Your Customers (KYC) Go through this Article
(30). BIT coins Go through this Article
(31). What do you mean by Money laundering? Money laundering is the process of transforming the profits of crime and corruption into ostensibly "legitimate" assets. In a number of legal and regulatory systems, however, the term money laundering has become conflated with other forms of financial and business crime, and is sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing and evasion of international sanctions. Most anti-money laundering laws openly conflate money laundering (which is concerned with source of funds) with terrorism financing (which is concerned with destination of funds) when regulating the financial system.
(32). What is NEFT or RTGS ? Go through this Article
(33). What is NTDL? The Net Demand and Time Liabilities or NDTL shows the difference between the sum of demand and time liabilities (deposits) of a bank (with the public or the other bank) and the deposits in the form of assets held by the other bank. In other words, the net demand and time liabilities of a bank can be calculated by using the following formula: Bank’s NDTL = Demand and time liabilities (deposits) – deposits with other banks Suppose a bank has deposited 5000 with the other bank and its total demand and time liabilities (including the other bank deposit) is 10,000. Then the net demand and time liabilities will be 5,000 (10,000-5,000). Thus, the deposits of a bank are its liabilities that can be in the form of demand liability, time liability and other demand and time liabilities.
(34). Types of Cheque Go through this Article
(35). What is CTS? Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project of the Reserve Bank of India (RBI), commencing in 2010, for faster clearing of cheques. CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically. Cheque truncation means stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc. This would eliminate the need to move the physical instruments across branches, except in exceptional circumstances, resulting in an effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.
(36).What is Sensex and how it is calculated? Sensex is the index of top 30 stocks in Bomaby Stock Exchange(BSE) Value of Sensex is calculated using "Free Float Market Capitalization" method. Free float ratio is number of outstanding shares available for general public to trade. Formula to calculate Sensex :-
(37).Minimum lock-in period for Tax saving Fixed Deposit 5 years
(38). What is Call option and Put option ? Call option - An option which gives right to the Option Holder to buy a certain stock at specified time and specified date Put option - An option which gives right to the Option Holder to sell a certain stock at specified time and specified date
(39). What is GDP ? Gross Domestic Product is the sum of all the goods and services produced within physical borders of a country in within a specific period of time. ==>> GDP and GNP explained
(40).What is GNP ? GNP = GDP + Income of residents overseas -Income of Foreigners within the borders of domestic economy
(41).What is DeMat account It is the process of converting the physical share certificates into equivalent number of electronic holdings
(42).What is RuPay card RuPay is India’s own card payment system launched by National Payments Corporation of India (NPCI)
(41).Bull and Bear market When investors expect prices to rise, it's known as Bull market. When investors expect prices to fall, it's known as Bear market.
(42) What is SWIFT? Financial messaging network which exchanges messages between banks and financial institutions
(43) What is Service Tax Tax levied on providing services in India, Rate is 12% + 0.36% for Education Cess. ==>> Detailed article on Service tax
(45) What is Mutual Fund ? What is safest type of fund ? Mutual Fund is a pool of fund where investors invests their money for a common objective. Benefits of Mutual funds Exempted under section 80(C) Managed by experts Index funds are safest because money is invested in all index stocks. The rise or fall of value align with index. Must read - Mutual funds explained Download Free Interview Digest - PDF Facebook
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